Energy 2030

Madison Gas and Electric (MGE) is working toward a more sustainable future for the benefit of all of its investors, employees, customers and broader community. In November 2015, MGE introduced its Energy 2030 framework.

Under Energy 2030, MGE will work with customers to:

Supply 30% renewable energy by 2030.

Reduce carbon dioxide emissions 40% by 2030 from 2005 levels. This target is consistent with the U.S. emissions targets for the 2030 timeframe established as part of the Paris Agreement on climate change.

Under its previous framework, Energy 2015, MGE reduced its carbon emission rate by 20% since 2005.

U.S. Mid-Century Strategy for Deep Decarbonization

The U.S. Mid-Century Strategy (MCS) for Deep Decarbonization is the United States' strategy for meeting the goals of the Paris Agreement on climate change to limit global warming to two degrees Celsius. MGE's long-term trajectory is aligned with the MCS.

80% Reduction in Carbon Emissions by 2050

MGE is committed to reducing carbon dioxide emissions at least 80% by 2050. If we can go further faster by working together with our customers, we will.

MGE's Energy 2030 framework has several key, long-term strategies for reducing carbon emissions. They are the same long-term strategies identified in the MCS and include:

reducing carbon intensity in electric generation;

promoting energy efficiency; and

electrifying the transportation sector.

Cleaner Energy

MGE is working to achieve a more sustainable energy future using the best, most cost-effective technologies as they become available. MGE already has taken action toward its goals:

New Wind Farm: The company is building a $108 million wind farm in Saratoga, Iowa. The investment will grow MGE-owned wind generation by 160%.

Wind Farm Purchase: The company is purchasing a share of the Forward Energy wind farm, which—when combined with Saratoga—grows MGE-owned wind generation by more than 200%.

New Solar Projects: MGE expects to seek regulatory approval in 2018 to build two large solar projects with WEC Energy Group. MGE's ownership share is expected to be at least 50 megawatts.

Community Solar: MGE’s unique Shared Solar pilot project in partnership with the City of Middleton, Wis., came online in early 2017. MGE continues to explore other Shared Solar projects.

Renewable Energy Rider: Under this program, MGE partners with business customers on customized renewable energy solutions. The model is designed to meet the needs and goals of companies that support or have signed on to the Corporate Renewable Energy Buyers' Principles, a collaboration facilitated by the World Resources Institute and the World Wildlife Fund.

Transition from Coal: MGE reduced its ownership share in the Columbia Energy Center, one of two coal plants in which MGE is a minority owner. MGE has no controlling interest in coal-fired generation and announced several years ago that it has no plans for additional coal resources.

New Technologies

Enabling new technologies, such as electric vehicles (EVs) and smart home technology, is a priority under MGE’s Energy 2030 framework.

EV Charging: MGE is a utility leader in EV charging with a network of public charging stations that operates on 100% clean energy, an EV home charging program and other programs for employers and multifamily property owners to install charging stations at workplaces and residential properties. MGE is working to grow an emerging EV market and to reduce carbon emissions.

Partnerships: MGE is partnering with the City of Madison's Metro Transit, which serves the majority of MGE's electric service territory with public transit, to secure federal funding for electric buses and charging infrastructure. The City has a goal to electrify 50% of its bus fleet by 2035. MGE provided financial and in-kind support as well as expertise to support the City's electrification efforts.

Smart Thermostat Program: This program is testing how MGE can reduce peak electric demand through the use of smart thermostats to manage air conditioners. MGE is meeting another objective under Energy 2030 to deepen customer engagement around energy efficiency and conservation.

New Resource: MGE keeps stakeholders informed about its Energy 2030 progress through energy2030together.com, which also engages customers further in new technologies and energy-saving efforts.

Strategic Business Goals, including Environmental Performance, Factors in Executive Compensation

MGE Energy’s compensation committee considers performance goals that are critical to MGE Energy’s success. These goals include earnings, system reliability and customer satisfaction. The committee and board also consider other performance measures such as bond ratings, cost containment, environmental performance and management of day-to-day operations as well as individual performance measures.